Payment & terms
"No-cost" EMI
How it may influence
"No-cost" can hide a processing fee, GST or a lost cash discount.
Evidence to check
- Is the total of all EMIs equal to the cash price?
- Is there a processing fee or GST on interest?
Useful step
Ask for the full cost of credit in writing.
When this is reasonable
Genuine no-cost EMI exists when the total equals the cash price.
Related Indian rule (for information)
RBI: interest cannot be hidden as "no-cost"
Tamil Nadu examples (illustrative)
- Online sale: "No-cost EMI" on a TV, with a processing fee shown only at checkout.
- Course call: "just ₹999 a month" without the number of months.
- Showroom: "exam fee extra" or "installation extra" mentioned once, quietly.
Sources
This page is a general explanation only; it says nothing about any particular seller.